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Friday, May 22, 2015

How to mitigate accelerated depreciation

Education is the easiest way to mitigate accelerated depreciation. Buying or selling a vehicle can be intimidating for most. Add an accident to the mix and it just complicates it even more. There are few tools that I can see would help minimize accelerated depreciation.

1 - A clearly articulated report on the damages with images that communicates to people outside of the auto industry. Understanding the damages makes a huge difference. This will also help when selling a vehicle. It has been my experience that there is very little trust in the world of slinging new and used vehicle. Documents from ICBC speak for themselves.

2 - A better-defined declaration process. The majority of people I meet understand that in BC the declaration is $2000 per incident. But the reality is that if your vehicle has an accumulation of damages over $2000, you must declare your vehicle as having a $2000 declaration. Check out the transfer form, it even says "cumulative".

Having some perspective regarding damages will help minimize the need to sell a vehicle at a lower price. When it comes to selling a vehicle if you are uncertain due to a lack of knowledge, it will impact what you are able to get for your vehicle.